Positive Drilling Results At San Miguel Deposit
CHIHUAHUA, MEXICO - New diamond drilling by Paramount Gold and Silver Corp. on its San Miguel (Clavo 99) deposit in the Palmarejo District of North Central Mexico confirms: (1) gold grades increase with depth; (2) gold is concentrated in southwest plunging zones; and (3) a significant strike extension which should lead to resource expansion.
"These are the best drill results obtained to date from San Miguel and they demonstrate that we are beginning to understand the distribution of high-grade gold in this very large system," Paramount Gold CEO Chris Crupi said. "We are now certain that a number of gold occurrences previously explored in shallow holes could represent much richer deposits at depth."
Paramount Gold owns 188,461 hectares (approximately 466,000 acres) of mining claims in the Palmarejo District, making it the largest land owner in this rapidly emerging precious metals mining camp. The San Miguel deposit is a north-northwest trending quartz vein containing about 50% of
Paramount Gold's current drilling program is evaluating three different types of potentially gold-rich targets: (1) north-northwest trending epithermal veins like San Miguel, of which three trends are known to date with typical widths of around 10 meters and strike lengths of one kilometer or more; (2) volcanic basin prospects of which the best known is Monte Cristo; and (3) northwest trending vein swarms ranging from 100 to 600 meters wide and one to two kilometers long such as the Temoris prospect where surface sampling is in progress.
"Our aim in this first pass drilling program is to identify targets for further definition drilling so that we can add to gold resources early next year. We will be following up the San Miguel results with additional work in this area and evaluating the potential of other similar targets that have only been tested with shallow drill holes. Results from the Monte Cristo target also appear to be promising and we expect to release them shortly," MCrupi said.
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